Aviva has announced significant enhancements to its lifetime mortgage proposition, making this increasingly popular form of funding in later life more flexible for all eligible customers.
- Unlimited number of voluntary repayments
- “One-year rule” no longer applies on repayments and further borrowing
- Minimum payment reduced to £50
- Available to all customers who applied for their lifetime mortgage on or after 28th April 2014
These new enhancements, which come into effect from 8th November, include:
Unlimited number of voluntary repayments
Customers will be able to make an unlimited number of payments, and are able to repay up to 10% in total of their initial loan per year (and further borrowing if applicable). This means they can manage their loan amount on a day-to-day basis.
Time restrictions lifted
There are no longer any time restrictions on repayments – customers could, if wanted, make a repayment as soon as the day after completion, and further borrowing or releases is not time-constrained by any repayments made.*
Minimum payment reduced
The minimum repayment has been reduced to £50, making repayments an option in day-to-day budgeting.
Accessing reserves and additional borrowing
Access to reserves is possible at any time, and customers can now make an unlimited number of requests for additional borrowing. The minimum sum accessible from the reserve is £2,000, and the minimum for additional borrowing.is £5,000. Customers are able to access their reserve the day after completion via a phone call, and the reserve funds can be in their bank account the same day, or on a specific day up to 14 days in advance.
Greg Neilson, Managing Director, Retirement, at Aviva, commented:
“I am delighted to announce these enhancements to our lifetime mortgage proposition. With these new features, customers can now take advantage of increased flexibility to make managing their finances in retirement even simpler.
"We know that people’s circumstances can change, and now customers have the security of knowing that they have a more flexible range of options available to them, whether they need to repay more often than planned, or borrow more to tide them over unforeseen events."
“In addition, these new features will be available to all customers who applied for their lifetime mortgage on or after 28th April 2014, so that as many people as possible can benefit from the ability to manage their retirement income more flexibly.
“Accessing property wealth is a vital part of people’s planning for their life in retirement, and it has never been more popular. By introducing these enhancements we are creating a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.”
*Previously, Terms and Conditions applied a ‘one year rule’ prohibiting repayments within one year of the initial loan being taken out, or one year of further borrowing or releasing any reserve. Additionally, customers were unable to take further borrowing within a year of any repayments.
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Notes to editors:
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